Demand Analysis-Managerial Economics

Demand Analysis-Managerial Economics

Definition Of Demand

An economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service. Holding all other factors constant, the price of a good or service increases as its demand increases and vice versa. 

Quantity demanded

The amount of good that a consumer is willing and able to buy at a given price over a given period of time.

Types Of Goods

Substitute goods: A pair of good which are considered by consumers to be alternatives to each other.

Complementary goods: A pair of good consumed together. As the price of one goes up, the demand for both goods will fall.

Normal Good: A good whose demand rises as people's income rises.

Inferior good: A good whose demand falls as people's income rise.

WHAT IS DEMAND

LAW OF DEMAND
LAW OF SUPPLY
MARKET EQUILIBRIUM

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